This invention relates generally to credit card transactions and more particularly, to systems and methods for authorizing and settling transactions associated with the maintenance and repair of vehicles of a fleet.
Managing the repair and maintenance of vehicles (e.g., cars and trucks) which are part of a fleet presently is a time consuming and tedious task. For example, to authorize a repair and maintenance service provider to perform a particular repair or maintenance service, a purchase order typically is issued by the fleet manager to the provider. If hundreds of vehicles are included within the fleet, such a system may require the issuance of hundreds, and possibly even thousands of purchase orders over a short time period.
In addition, it is desirable to track how often maintenance and repair work is performed on each vehicle. Such tracking enables the fleet manager to determine the desired timing for future services, whether unnecessary services are being provided, and the operating costs for each vehicle. Issuing voluminous purchase orders, and tracking maintenance/repair information for hundreds, or thousands, of vehicles can be extremely time consuming and tedious.
In an attempt to at least control costs and provide administrative relief, some fleet managers have contracted fleet service providers with networks of service providers who will perform repairs and maintenance in accordance with established guidelines. Typically, and to enable at least some control, purchasing instruments, e.g. credit cards, are issued to authorized drivers of fleet vehicles. If a particular vehicle requires maintenance or repair service, the driver is instructed to take the vehicle to a network provider and request that the work be performed. This network provider then calls the fleet service provider for authorization of the work and establishment of a pre-authorization for the repair. In such a situation, the repair and maintenance services are provided by the network provider based upon the approval and promise of payment of the fleet service company.
At least with respect to fleet maintenance and repairs, it is desirable to enable the fleet manager, or its fleet service provider, to control the maintenance and repair authorization process to ensure that the maintenance or repair is necessary and is being provided on a negotiated price basis. In addition, it would be desirable to automate, and simplify, the authorization and settlement process associated with the repair and maintenance of fleet vehicles, thus reducing the costs associated with fleet management.
These and other objects may be attained by systems and methods for the authorization and settlement of fleet maintenance and repairs which, in one embodiment of the system, includes an interactive voice recognition system, an acquiring bank system, an issuing bank pre-authorization system and a fleet service providers pre-authorization system. The interactive voice recognition (IVR) system generally is utilized for handling authorizations and repair data capture for network providers, e.g. merchants. The acquiring bank system is coupled to the fleet service providers pre-authorization system and, in general, assigns codes to the various requests that may be generated through the fleet service providers pre-authorization system.
The issuing bank pre-authorization system is coupled to the interactive voice recognition system and is a database for storing information relating to pre-authorized repair and maintenance services. The data stored in the issuing bank pre-authorization system sometimes is referred to herein as a pre-authorization table. The issuing bank pre-authorization table is populated by a pre-authorization table of the fleet service provider. The fleet service provider pre-authorization table contains specific repair details for the transaction as part of the overall vehicle repair history, such as transaction date, authorized repair provider, total dollar amount authorized, work authorization (purchase order) number, applicable credit card number, and other data.
The fleet service providers pre-authorization system also is coupled to a vendor relations system. The vendor relations system generally includes both a data and a voice link to the IVR system so that in the event that a particular merchant is not an authorized service provider or under other circumstances as described hereinafter in more detail, a direct link can be established between the merchant and the vendor relations system so that the merchant can be set-up as an authorized provider.
The acquiring bank system and the issuing bank pre-authorization system (sometimes referred to herein as a smart acquirer) are electronically linked, e.g., via modem, to a credit card system, such as the Master Card system. Generally, using the information available from the acquiring bank system and the issuing bank pre-authorization system, the credit card system is provided with sufficient information to determine whether a valid charge can be made against a credit card account. The credit card system is electronically linked to an issuing bank system, e.g., via modem, so that if the issuing bank pre-authorization system determines that a charge is valid and authorized, the issuing bank system actually issues the authorization to a service provider, via the credit card system and acquiring bank system. Of course, if a transaction is not valid or not authorized, then the issuing bank system prevents the transaction from occurring with the provider.
Generally, credit cards are issued to individuals designated by a fleet manager from the issuing bank as designated by the fleet service provider. The fleet manager typically contracts with a fleet service provider who maintains a network of repair providers (i.e., merchants). Each fleet manager sets repair authorization parameters for the fleet service provider to follow. If a repair exceeds authorization parameters, the fleet manager typically is contacted for approval.
With respect to the process executed by the above described authorization and settlement system, merchants (i.e., service providers) are generally classified as account types xe2x80x9cA, B, C, D, and Exe2x80x9d. The steps executed depend, at least in part, on the particular account type. The classification designations are described below in more detail. In any event, processing is initiated by the service provider at the point of purchase of the product or service. If the merchant is not following system procedures and simply swipes the credit card before obtaining pre-authorization from the fleet service provider, the card information is transmitted to and processed by the issuing bank system. No xe2x80x9cpromoxe2x80x9d code will be associated with the transaction in the issuing bank pre-authorization system. The card information is passed to the credit card system by the issuing bank system, and the transaction is then denied.
Prior to performing any repair, the merchant calls (e.g., via the telephone) the IVR system to obtain authorization. Customer information is supplied via the IVR system, and the merchant and transaction are validated. Based on the dollar amount of the transaction, interaction with the fleet service provider may be necessary to approve the repair. Such validation data is supplied to the issuing bank pre-authorization system, and the acquiring bank system processes the transaction and supplies transaction data to the credit card system. A xe2x80x9cpromo codexe2x80x9d of xe2x80x9c1xe2x80x9d is assigned to the transaction for processing by the acquiring bank system.
The issuing bank system validates, from the issuing bank pre-authorization system, that the repair/maintenance merchant class code (MCC) transaction is an approved provider. The issuing bank system also checks the xe2x80x9cpromoxe2x80x9d code assigned to the transaction and if the transaction exists in the issuing bank pre-authorization system. If no pre-authorization or xe2x80x9cpromoxe2x80x9d code is assigned to a particular transaction, then the merchant is provided with a xe2x80x9ccall referralxe2x80x9d indication, or other message, at the point of purchase (e.g., on the display of the machine in which the credit card is swiped). In addition to determining if a pre-authorization for the transaction is found in the pre-authorization table, and if a xe2x80x9cpromoxe2x80x9d code is assigned to the transaction, normal credit card authorization functions such as checking for possible fraud or a stolen card can be performed. If all the issuing bank checks are passed, then the transaction is approved. After completion of an authorized repair, the acquiring bank credits the merchant for the repair and credits the fleet service provider, e.g., a negotiated volume rebate).
The above described system and process enable the fleet manager and its fleet service provider to control the maintenance and repair authorization process to ensure that the maintenance or repair is necessary and is being provided on a negotiated price basis. In addition, the system and process provide an automated authorization and settlement process for the repair and maintenance of fleet vehicles which are simple to use and are believed to reduce the costs associated with fleet management.